They Advised me that the policy will start easing around October this year.
IMO these new policy introduced by APRA is just a temporary to cool down Sydney and Melbourne Market. It can't sustained forever, as other capital city has not seeing the growth that you see in Melbourne and Sydney.
There's a Wall St saying that the Bull climbs up the stairs and the Bear jumps out the window. Essentially good stuff comes slowly, but bad stuff happens almost overnight. The bad stuff right now is unfavourable policy changes. It's been years in the making, but the implementation all seems to be happening right how.
During the GFC virtually every lender introduced restricted lending policies in one form or another with a period of only a few months. Whilst things aren't as tight today, a lot of those policies are still in place.
When investor lending growth slows down for a period of time, these policies will be relaxed and change. I agree that conditions will become more favourable. I think it will take a lot longer than October however.
The 'no more pricing for investors' policy is going to take years to claw back. Lenders love this one because it means their investment loans are going to be more profitable. It will take more competition for them to get more aggressive on pricing for investors. The banks are always slow to give up fatter profit margins.
80% LVR from BW is a nothing thing because BW were never really in the game anyway aside from the 95% niche. They'll probably relax this within a reasonable amount of time, but unless other lenders start to employ similar measures, nobody really has any need to care now or in the future.
Affordability assessment has the biggest impact and will likely take a very long time to be reviewed. I'm not sure if we'll ever see it as good as it is now. It's a result of regulation and regulation has a tenancy to advance, not retreat. Easing of this sort of thing will probably take the form of 'rate for risk' analysis as more detailed CRAA reporting filters through. I can see a time when your credit rating will have a more direct influence regarding the rates you pay and how much you can borrow.